Who does not want to make their home look more beautiful? Home improvements may mean both essential repairs and cosmetic renovations. Every homeowner needs to shell out some cash in order to maintain the property in a reasonably livable state.
You’d eventually need to change leaking gutters, or replace moldy, worn-out carpets. Home improvement is a necessary element in homeownership. Homeowners take home rehab as a chance to increase the value of their residence . However, there may be improvements that do not necessarily achieve this objective .
The supposed “added value” after the said improvements would not translate when the reselling time comes. This makes it hard to recover from the rehab costs.
Home Improvements that Don’t Improve Home Value
While a manicured lawn may draw in more potential buyers to check the property out, they may not see this as something they’d want to pay for.
A well-maintained garden takes love and effort; add to that, a sizable amount of money. It may make a home look tact and well-kept but if the future homeowners can’t tend to it as much as you do, it’s charm may easily wither off. For the less skilled folks, the need to have a professional to maintain the landscaping may add to the utility costs. This may not be something they’d want to put their money to.
Building a swimming pool is another good example. Building and filling in a large pool will drain out your finances. Having one may look enticing, but more often than not, buyers would not want to be caught underwater due to its extensive maintenance cost. You may throw out the wrong bait to buyers if you decide to add a pool. You may be able to recoup with the building expenses when the house gets sold but recovering from the maintenance costs will surely take time.
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Doing It Yourself
Reality TV shows make gorgeous home renovations through DIY projects look so easy. However, doing home improvements all on your own may spell out disaster. You can’t just knock down walls or add more windows or build another storey without having to consult a professional about it. While you want to channel your Martha Stewart and ace out on those renovation ideas, it may take a professional to meet certain building codes and safety measures. More importantly, safety should be observed over aesthetics.
Think of cosmetic changes as the icing on top of a cake. A professional contractor can help you do the job well and on time. Your ideas and their skills and expertise may sound like a perfect combo, too.
Big Projects, Too Little Time
Did we say “on time”? Yes, that’s right, there is a deadline to meet. Some rehab loans such as the FHA 203(k) require a specific amount of time to have all work done. More specifically, all repair should be done in a span of 6 months.
This is why relying on yourself to finish the job on time would not make sense. A contractor who has enough experience working with loan programs like this may be able to pace out the project for it to finish within the allotted time.
Renovations that Pull In Advantages
Direct your home improvement funds to repairs that would be beneficial not just to you, but to the potential buyers should you decide to resell in the future. These can be improvements such as upgrading the kitchen and bath that has never been changed since the 60’s or adding a garage if there is none. These changes could be things that a future buyer would add into the property if it was not present in the first place. They will be willing to pay for these renovations for the convenience of not having to make the repairs while they are residing in the property.
Another great rehab work is making a home energy-efficient. The Section 203(k) loan can cover these upgrades as well. Energy-efficient home improvements are recognized by the FHA as an effective means for borrowers to afford their monthly payments. The idea is that since a significant amount will be slashed off from the utility bills after such changes, the money can then be used to pay off mortgages and debts.
Home improvements need a lot of thinking and planning. While doing this, collaborate with a building professional, housing counselors and approved lenders. This allows you to create a more feasible course of action so you’d get the most out of your rehab loan program.